Success Story: Evergreen Packaging Solutions

Client Overview

Evergreen Packaging Solutions is a forward-thinking manufacturer specializing in innovative and sustainable packaging solutions for the consumer goods and food service industries. Committed to environmental responsibility, they focus on utilizing recycled materials and biodegradable alternatives.

The Challenges Faced

Despite their innovative spirit and market potential, Evergreen Packaging Solutions faced several significant financial and operational hurdles that hindered their growth and profitability:

• Difficulty tracking true cost of goods sold (COGS) across diverse product lines.
• Inconsistent cash flow due to long customer payment cycles and high raw material costs.
• Lack of visibility into profitability by product or customer segment.
• Missed opportunities for tax incentives related to sustainable manufacturing practices.

Our Solutions Implemented

Schapira CPA collaborated closely with the Evergreen Packaging Solutions leadership team to develop and implement a multi-faceted strategy addressing their specific pain points:

• Implemented a refined activity-based costing (ABC) system to accurately allocate overheads.
• Developed enhanced cash flow forecasting models and advised on optimizing payment terms.
• Created custom profitability analysis reports segmented by product line and customer.
• Identified and secured relevant green energy tax credits and deductions for eco-friendly investments.
• Provided ongoing strategic financial advisory and quarterly performance reviews.

The Results Achieved

The implementation of these targeted solutions yielded significant, measurable improvements for Evergreen Packaging Solutions:

• Improved COGS accuracy, leading to better pricing strategies and a 5% increase in overall gross margin.
• Reduced cash conversion cycle by 15 days through improved receivables management.
• Identified and discontinued two underperforming product lines, reallocating resources to boost profitable lines by 20%.
• Achieved annual tax savings of over $75,000 through newly claimed incentives.
• Enhanced financial reporting clarity, enabling faster, data-driven decision-making by management.